Saturday, January 28, 2017

1. My attention has been drawn to a recent report pertaining to a CIA document, stated to have been recently declassified by the US Intelligence, on the 1980s BMF issue.

2. I have also just sight of that CIA document titled “DIRECTORATE OF INTELLIGENCE” dated 5.3.1985. Certain members of the press have asked me for my comments.

3. Let me point out that, that CIA report was not a specific report or finding by the US on the BMF issue. Rather, it was a normal information paper for the US government then,

4. However, since I have been asked, the following are my comments.

5. Firstly, the CIA report itself acknowledged that the Prime Minister then was not in any way, personally or directly linked to that Bumiputra Malaysia Finance (BMF) issue. This can be found at page 4 of that report under the sub-heading “Assessing the Political Damage”, which states:

“Thus far no direct links have been established between Mahathir and the corruption at BMF…”

6. Secondly, that CIA report pointed out that as early as July 1983, I had announced my views that the BMF’s handling of its financial lending was imprudent, and that I had also pledged action to be taken upon investigations. This was in spite of the fact that the BMF issue related to the affairs of a bank, and not the government per se. That portion of the acknowledgment can be found at page 7 of that CIA report titled “APPENDIX”, in which para 5 states:

7. Thirdly, the same report also pointed out that a committee of inquiry (Special Investigation Committee) was set up to look into the BMF issue. Records show that Special Investigation Committee, headed by Tan Sri Ahmad Nordin (Auditor General) had forwarded the necessary recommendations for further action. There was no cover up of that report. It was made public. It was certainly not put under OSA. The release of that Report to public, is also acknowledged by that CIA report at page 2 in para 4.

8. In fact, that Report had prompted the police to carry out the necessary investigation into the recommendations of that Special Investigation Committee. There certainly was no cover up in any way. Whether the necessary authorities brought any party to the Courts is for them to answer. The government carried out its duty as properly as it was required to do in the circumstances then.

9. Having pointed out the real contents of the CIA report, I would like to point out the clear distinction between the BMF issue then, and the 1MDB issue now, so that it is clear I did not have a 1MDB – like scandal when I was PM.

a. The BMF issue unlike the 1MDB issue, did not involve allegation of direct impropriety by the government in power. In contrast, the 1MDB issue is directly linked to impropriety by the present government.

b. The BMF issue was not directly linked to me as the Prime Minister then. Whereas, the 1MDB issue is directly linked to Najib Razak, the Prime Minister now. He is in fact at the center of the scandal.

c. On the BMF issue, that CIA report was by a US Agency, and was not a specific report or finding by the US on the BMF issue. In contrast, on the 1MDB issue, the Department of Justice (DoJ), a US Agency have released the necessary report as contained in the cause papers filed in a court of law in California, with specific findings linking the 1MDB issue to MO1 (admitted by a Minister to be referring to Najib Razak).

d. In the BMF issue, a Special Investigation Committee was set up and its Report was made public. In contrast, on the 1MDB issue, Najib’s government is yet to set up any proper independent investigation committee, free of its control. Even the existing Auditor General’s Report on 1MDB has not been made public and has been put under OSA.

e. The BMF issue resulted in various actions taken both in Hong Kong and Malaysia, against various individuals involved in the BMF issue. In contrast, in this 1MDB issue, the necessary authorities such as the police and the Bank Negara are yet to conclude their investigations despite international counterparts in the US, Switzerland and Singapore having done so to the extend of charging individuals in court. But, the SPRM investigation papers have been dismissed by the new Attorney General who himself was appointed in place of the previous Attorney General who was removed, allegedly for health reasons but without a report by a Medical Board. The report by a Special Task Force set up by the previous Attorney General on the 1MDB issue was also dismissed by the new Attorney General and put under OSA.

f. The outcome of the BMF issue was generally received well by the society including the Opposition and other political groups (see The New York Times, January 8, 1985 titled “MALAYSIA DISCLOSES DETAILS OF BANK SCANDAL”). On the 1MDB issue, the Attorney General actually stopped further investigations, which he is not empowered to do. The opposition parties are not satisfied with the outcome of the scandal involving 1MDB.

My wife and I wish our Chinese friends including those who greet us at shopping complexes and other gatherings a Prosperous and Happy Year of the Rooster.

I would like to thank my Chinese friends and supporters for their support during and after my term as Prime Minister of our country Malaysia.

Lately attempts are being made by certain people to label me as anti-Chinese. This is to serve their political agenda. They know they are lying.

They want the Chinese not to support the DAP and the other parties who want to remove Najib as Prime Minister. They want to perpetuate Najib’s kleptocracy. They ignore that I am not opposed to FDI from China but only against mass immigration. I am against mass immigration from any country. No country allows mass immigration. Selling land for foreigners to build cities for people from their own country is not FDI. The BN and UMNO in particular should declare that they want to flood this country with foreigners.

I am not anti-Chinese. I am pro multiracial Malaysia and Malaysians.

My record will show that all races prospered during my premiership. In fact Malaysia became known as an Asian Tiger.

Najib’s kleptocracy has destroyed Malaysia’s prosperity and Asian Tiger image. Now Malaysia is known as one of the most corrupt countries in the world. He cannot pay 1MDB loan of 42 billion, yet he has now borrowed 55 billion. This will bankrupt Malaysia.

All races are suffering because of Najib. We all have to work for his removal.

Still I hope Malaysian Chinese will enjoy a Prosperous and Happy New Year.

1. There is a group of people who wants to make any objection against Foreign Direct Investment from China as racist, as being against the Chinese.

2. I categorically welcome FDI from China as I welcome FDI from any country. What I object to is the kind of FDI from China.

3. It is not about investing in manufacturing industries in Malaysia. It is about acquiring land in Malaysia, building settlements, towns, and cities which are to be sold to mainland Chinese who will come and live here. They will not number in the hundreds or thousands but in millions.

4. It is this massive immigration that we object to. If the project is by Indians and a few million Indians are to come and live in Malaysia, we would also strongly object.

5. Or if the Russians or Eastern Europeans were to mass migrate into Malaysia we would object. And if Africans or Arabs were to flood Malaysia we would also object.

6. Look at the refugees seeking asylum in Europe. By comparison with the 400 million Europeans, the number is small; only 4 million. But look at how the Europeans react to them.

7. They put up razor wire fence and send police and police dogs to keep the immigrants out. They left these people in the open, exposed to the extremely cold winter so that many would die. They got Turkey to agree to take in millions of these refugees when Turkey has already hosted almost 3 million.

8. Mr Trump wants to build a wall to prevent Mexicans and other South Americans from migrating into the U.S. They have police patrols and guard dogs to keep out these foreigners.

9. That’s how much nations are against mass immigration into their countries.

10. But the U.S. allows Japanese, Korean and Chinese automotive companies to set up plants in the U.S., to employ American workers, and borrow money from U.S. banks.

11. Clearly there is a difference between FDI in industries to create jobs for the local people and the mass entry of foreign people to settle even in the U.S. It is so also in the countries of Europe.

12. The Chinese are welcome to invest in industries in Malaysia. But just as we would not welcome mass immigration of Indians, or Pakistanis or Europeans or Africans into Malaysia we have to adopt the same stance on Chinese immigration into Malaysia.

13. No one can deny that the development of cities like the Forest City is to accommodate mainly mainland Chinese. They have already bought the properties and are coming by the planeloads to inspect and buy the properties offered.

14. In and around JB alone there will be 1½ million foreign Chinese. What about the developments going on in Kuala Lumpur, Penang, Malacca and Kuantan, Pahang. What about the housing to be built for the workers and engineers when the East Coast Railway and the HSR are being built.

15. Najib’s boast of attracting more than 140 billion of FDI from China is all about selling prime Malaysian land for the China Chinese to settle in. If he had gone to India or Africa or Europe and sold Malaysian land for millions of foreigners to settle on, I would still not consider that as FDI. And I think Malaysians would also feel the same about it.

16. It is not about being anti-foreign or anti-Chinese. It is about being pro-Malaysia. Additionally these immigrants will not confine themselves to their enclaves only. They will want to go to other places and to do business. They had come in through the powerful companies of China.

17. They will compete with Malaysian businesses. Already many contracts for the construction of high rise buildings have been won by them. The small and medium enterprises will also face competition by them.

18. Local businesses, largely Malaysian Chinese owned, will definitely lose out to those of the mainland Chinese.

19. We have seen the speed and efficiency of the China Chinese builders. They bring in their own workers from China. They can build a 5 star hotel complete with interior decoration and landscaping in 8 months. And they are operating them themselves in the areas they have developed in Johor.

20. Whether the Malaysian business people will admit it or not the fact is that these foreign residents will take a big chunk of the businesses of Malaysians.

21. They need to think about this and stop talking about being anti-Chinese. I and my friends in the new party are not anti-Chinese. We are working with a predominantly Chinese party. Trying to make the Malaysian Chinese reject us is actually trying to support the kleptocratic Najib Government.

p/s I was reported as saying that DAP had asked to have a second Deputy Prime Minister.

I wish to correct my mistake. It was not the DAP but it was the MCA.

Datuk Loke Yuen Yaw was reported by Jabatan Penerangan Malaysia, to urge Dato Seri Najib in 2009 to create the post of Deputy Prime Minister (TPM) and Deputy Chairman of BN to be filled by the MCA President to reflect “real power sharing”.

1. I don’t know if it is true about HRH The Sultan of Johore is throwing a challenge to me over the development of J.B.

2. Maybe it is only The Star which is interpreting what HRH says as a challenge to me.

3. But unless HRH denies he is challenging me, I will take the report of The Star as the truth.

4. I admit I am at a disadvantage here. While people can say what they like about me, and I welcome their freedom to say so, I hope that in responding to HRH’s challenge I will not be arrested and jailed without trial. If it is with trial, I welcome the arrest.

5. Now, what did I say? Nothing more than repeating a report by Bloomberg in the press. But I appreciate why Bloomberg is not challenged nor denied.

6. What did Bloomberg say in its report on Nov 22 last year? It said that a China Chinese company will build Forest City in J.B. which can accommodate 700,000. It went on to say that plane loads of China Chinese are being flown in to view the man-sized model (with pictures) and they have and will buy most of the properties in Forest City.

7. I doubt if many Johore Malays and Chinese are buying or going to buy these apartments. There just aren’t that many Malaysians to buy all these properties.

8. Bloomberg, in the same report mentioned 60 other development similar to Forest City, and these are also being sold to mainland Chinese.

9. Looking back to 1819, when Sultan Ali of Johore did not lease Singapore to the British, the Temenggong signed the lease. And look at Singapore today. A part of Johore is now a foreign country – well developed no doubt, but a foreign country.

10. There will be in all more than a million foreigners living in J.B Forest City and the 60 other development. These new places will not become a foreign country, but it will have an inordinate percentage of foreign people. If they stay long enough they will be entitled to become citizens of Malaysia.

11. Yes, I promoted Foreign Direct Investment. But it was not about buying land in Malaysia, developing them and selling them to foreigners, who will stay there.

12. FDI is about investment in the manufacturing industry. Malaysian companies will construct the building and Malaysians will work in the industries. They will acquire skills and start their own manufacturing business.

13. Malaysian contractors are completely capable of building all kinds of buildings and develop land. We don’t need foreigners to do this. Look at Malaysia today. 90% or more of these new buildings and development are by Malaysian companies. Majority of the buyers are Malaysians, and they are the people who stay there.

14. But when foreigners buy land, there is not even an inflow of capital. Much of the money will be borrowed locally. And they can do their business with their own banks.

15. Whatever foreign companies earn will be expatriated, will result in outflow of capital. When the scheme is introduced wherein you can buy property in China and get one flat or house free in Malaysia, no profit will be made in Malaysia – therefore no taxes will be paid to the Malaysian Government.

16. Let all transactions be transparent. Publish all documents about the investments, the number of workers, their home countries, the buyers, the banks which finance and all expatriation of funds. Do this honestly. No hiding. Please don’t ask a certain Tunku Aziz to verify. He may have been the Malaysian Head of Transparency International, but he approves completely the stealing and the corruption of 1MDB.

17. So let the truly international Transparency International examine the exposed official documents. Let the people see the documents to prove their genuineness.

18. Looking East is not about asking the countries of the East to buy land in Malaysia, develop and sell to the people from these countries. Yes, we have encouraged foreigners to make Malaysia their second home. But their numbers are very small. Looking East is not about mass immigration of hundreds of thousands. It is about Malaysians learning about how these Eastern countries developed themselves.

19. It is easy to accuse me of being a racist. I have been called a Malay ultra before.

20. This labelling, this demonising actually expose the lack of credible arguments against what I do or say.

21. It reflects a fundamental lack of basis for the arguments against me.

22. This is a multiracial country. People of different ethnicity, language, religion, culture and even economic well-being have lived in this country in peace.

23. In many countries even a slight difference in the interpretation of their common religion has resulted in violent conflicts and wars. But relatively speaking Malaysia is stable and peaceful.

24. It is stable and peaceful because we accept each other as we are. During my 22 years as PM, there were no significant racial clashes. Differences, yes. But no violence. And the country grew.

25. Had I been a racist, my periodwould have seen turmoil and regression in this country.

26. You can dispute what I say. That is your democratic right.

27. I dare The Star to publish what I say in full. It is a measure of the Government fear of the truth that the mainstream media is strictly controlled.

28. I will accept this article being totally blacked-out because we are living in a kleptocratic country where truth is anathema, only to be whispered but never said aloud.

29. I am a Malaysian born in Kedah.

30. Malaysia is my home and the object of my loyalty. If I have to be accused of les majeste for what I say, so be it.

Dr Mahathir bin Mohamad

16 January 2017

P/S: In the case of Hong Kong and Macau, Pondicherry, Goa and other French and Portuguese enclaves in India, upon the colonial masters giving up their empire, these territories were returned to the original countries. All occupied lands were also returned to the original owners of these territories.

The edited version of this letter was published in the letters pages of The Star newspaper, Jan 17, 2017.

Monday, January 9, 2017

1. ​At independence Malaysia faced a big unemployment problem. To solve this we started with opening land for the landless. But development of land was not able to create enough jobs. It was therefore decided that Malaysia should industrialise. But Malaysia had no manufacturing expertise, no capital, no big corporations and no knowledge of the world market.

2. ​Accordingly Malaysia decided to invite foreign investors. By this we meant that foreign manufacturing companies could set up labour intensive plants in Malaysia to produce for export. The Government would provide land and infrastructure and give tax holidays.

3.​ FDI solved most of our unemployment problem and enriched the country through industrialisation and inflow of capital. But a large amount of the capital was raised domestically.

4​. But today Najib’s Government has given a new definition for Foreign Direct Investment. He regards foreigners bringing in money to buy land and develop towns and cities where their people would come and stay as foreign direct investment.

5. ​The result benefits us not at all. Much of the most valuable land will now be owned and occupied by foreigners. In effect they will become foreign land.

6. ​When we sold Singapore island to the Brits we must know that Singapore with all its wealth and development has become a foreign country. We cannot be proud of its achievement anymore than we can of the development of other countries in the world.

7. ​Currently we are seeing huge tracts of land around Johor Bahru being sold to foreigners with no restriction on the sale of properties developed to them and mass immigration to take up residence in these new cities. One example is Forest City developed by a China-based company. Already thousands of units have been completed and sold to mainland Chinese. Bloomberg reports that 700,000 mainland Chinese would stay there. And the same agency pointed out that around Forest City, and therefore around Johor Bahru, there are 60 similar projects which can house more than one million people.

8.​ Typically Chinese contractors prefer to bring in their own workers, architects and engineers. Few Malaysians would be employed in these projects. And few Malaysians would be able to buy the flats being built.

9.​ Actually our own people are quite capable of developing our land. They may not have the capital to invest immediately. The development may be slower and the scale may not be so big. The buyers will be local.

10. ​It doesn’t need much imagination to see how much this benefit Malaysia, Malaysians and the Malaysian Government.

11. ​But if we consider inflow of foreign capital to buy, develop and occupy our land as FDI, then we must expect huge areas of our land becoming foreign enclaves.

12. ​In most countries foreigners are not allowed to buy land. They may be given contracts to build but they will be only contractors. Certainly what they build will not be for huge numbers of foreign people to occupy almost exclusively.

13. ​But we are very generous. Even when we limit foreign buyers to buying only the expensive property but the Government, including the state Government would give exemption so that even low cost or affordable houses can be bought by foreigners.

14. ​We claim that – these foreigners will not stay permanently in the enclaves they develop. We claim they will stay here only for the winter months.

15. ​But we are kidding ourselves. Can we imagine hundreds of thousands of foreign people flying into the country to stay for three months and then flying out to their country to live there for nine months. Can we imagine for nine months these towns and cities will be empty – the shops, flats, offices, hotels, and recreation areas being closed. They will become ghost cities and towns. Empty roads and streets. Empty shopping complexes. It is absurd. Denying that 700,000 would occupy Forest City is self-deluding. No condition on who can stay in these houses has been stipulated.

16. ​But some point out that the investment will come from many countries. Agreed. But most of them have not enough people to settle in foreign lands. They would be investing in industries to benefit from our low-cost labour. They would build their plants in the industrial estates we put up. They will not engage in huge housing development projects. They will not settle here.

17. ​We can allow for foreign ownership of small plots of land. We can lease the land to them.

18. ​But we cannot allow thousands of acres to be owned, developed and settled by foreigners. If we do that literally they would become foreign enclaves, troublesome for local authorities to manage. Indeed difficult even for the central Government to manage.

19. ​We want our country to develop. Experience have shown that Malaysians can develop their own country. Their development is second to none. But their development would be for Malaysians.

20. ​But during Najib’s China trip, he claimed that he succeeded in getting 150 billion Ringgit of FDI. No details were given. I am sure that most of this FDI would involve selling land, Government’s and 1MDB land to pay the debts which everyone knows have been incurred by them. We are going to see large chunks of Malaysia being developed by the foreign buyers and being occupied by them. Eventually they would demand for citizenship and they will participate in Malaysian politics including in elections. Whatever ideology they believe in might change the colour of Malaysian politics.

21. ​As much as we cannot be proud of the development in parts of land which have become a foreign country, we cannot be proud of a magnificently developed Malaysia, occupied and owned by foreigners.